Consumer Behaviour Analysis in Hong Kong
CONSUMER DEMAND
AN ECONOMETRIC
IN HONG KONG
ANALYSIS 1
E. R. LIM *
Introduction The objectives of consumer demand analysis are first, to isolate a few major variables from the many and complex factors influencing consumer behaviour, and second, to verify empirically that this relatively small number of parameters gives a reasonable explanation of a wide range of observations on consumer behaviour. The quantitative knowledge thus obtained is necessary for the study of economic development and for the formulation of economic policy. In addition they are a necessary input to the evolution of consumer theory. The data for the present study come from the household expenditure survey conducted by the Hong Kong Department of Commerce and Industry from 1963 to 1964. The survey covered almost three thousand households in all census districts of Hong Kong and included information on monthly
household expenditure on more than 90 items of commodities and services as well as information on household particulars such as size and composition of household, occupation, employment status and industrial group of head of household, etc. Description, methodology and summary results of the survey are published in The Household Expenditure Survey, 1963/64 and the Consumer Price Index.2 The 90-odd items of expenditure in the survey are classified into eight groups for this study: foodstuffs (including meals away from home but excluding alcoholic drink); housing; fuel and light; clothing and footwear; durable goods; miscellaneous goods (including alcoholic drink and tobacco); transport
* E.R. Lim is Lecturer in Economics, University of Hong Kong.
1 This paper presents the preliminary results of the author’s work on the household sector in Hong Kong. Transcription of data and computations on the IBM-360 were financed by a research grant from the University of Hong Kong. The co-operation of the Commerce and Industry Department, Hong Kong, in making the data available is
AN ECONOMETRIC
IN HONG KONG
ANALYSIS 1
E. R. LIM *
Introduction The objectives of consumer demand analysis are first, to isolate a few major variables from the many and complex factors influencing consumer behaviour, and second, to verify empirically that this relatively small number of parameters gives a reasonable explanation of a wide range of observations on consumer behaviour. The quantitative knowledge thus obtained is necessary for the study of economic development and for the formulation of economic policy. In addition they are a necessary input to the evolution of consumer theory. The data for the present study come from the household expenditure survey conducted by the Hong Kong Department of Commerce and Industry from 1963 to 1964. The survey covered almost three thousand households in all census districts of Hong Kong and included information on monthly
household expenditure on more than 90 items of commodities and services as well as information on household particulars such as size and composition of household, occupation, employment status and industrial group of head of household, etc. Description, methodology and summary results of the survey are published in The Household Expenditure Survey, 1963/64 and the Consumer Price Index.2 The 90-odd items of expenditure in the survey are classified into eight groups for this study: foodstuffs (including meals away from home but excluding alcoholic drink); housing; fuel and light; clothing and footwear; durable goods; miscellaneous goods (including alcoholic drink and tobacco); transport
* E.R. Lim is Lecturer in Economics, University of Hong Kong.
1 This paper presents the preliminary results of the author’s work on the household sector in Hong Kong. Transcription of data and computations on the IBM-360 were financed by a research grant from the University of Hong Kong. The co-operation of the Commerce and Industry Department, Hong Kong, in making the data available is